KSE hits 26-month high

KARACHI - The Karachi stock market ended the week on a very positive note as the KSE 100-share index closed on a 26-month high on strong foreign interest in blue chip scrips. The KSE 100-index ended 1.68 percent, or 179.81 points, higher at 10,882.00, its highest close since August 2008. The KSE 30-index closed at 10,475.03 with a gain of 196.02 points, the KMI 30-index at 17340.66 with a gain of 368.50 points, while all shares index closed at 7562.10 with a gain of 118.38 points. Trading activity was better as compared to the last trading session as the ready market volume stood at 19.52 million as compared to last trading sessions 12.59 million. Future market volume, however, stood at 6.47 million shares as compared to 2.88 million shares of last trading session. Market capitalization stood over Rs 2.974trillion. As many as 244 companies advanced, 103 declined and 22 remained unchanged. Highest volumes were witnessed in Lotte Pakistan PTA at 33.70 million, closed at Rs 11.50 with a gain of Re 0.61, followed by Jah. Sidd.Co at 17.75 million, closed at Rs. 10.79 with a gain of Re. 0.64, and Nishat Mills at 12.77 million closed at Rs 53.39 with a gain of Rs. 1.60. Ahsan Mehanti said, Strong institutional & retail interest led by the oil & gas sector was witnessed on rise in international oil prices close to $87, while positive meeting between KSE directors & expectation for early release of next IMF tranche of $1.7 billion also played a catalyst role in positive activity. Analysts said that influx through off-shore accounts, unilateral and syndicated rallies in targeted sectors and stocks by local financial groups, resident participants and government treasuries will, however, continue to provide short-term trading opportunities to the regular players. They added that the reason behind the threats of power tariff hike and taxation is creating unrest and increasing nervousness, is the question that stays unanswered, as to why the international organizations and loan extending funds do not exert pressure on the authorities for reducing line losses and initiate faster recovery from the defaulters of power distribution companies instead of increasing power tariff.